Sumary of The Genius of Abenomics Emerged Long After Abe:
- By Daniel Moss | Bloomberg, And the winner of the Japanese leadership contest is.
- Japan’s stop-start recovery makes it almost inconceivable that fiscal stimulus will end anytime soon.
- The three contenders to lead the ruling Liberal Democratic Party — Taro Kono, Sanae Takaichi and Fumio Kishida — all favor some form of further budget largesse, not least because a general election is also approaching.
- Near-zero rates and quantitative easing have been part of Japan’s toolkit for decades, long before they were wheeled out in the West to fight the global financial crisis and the pandemic recession.
- The monetary agenda was left to the Bank of Japan, whose governor, Haruhiko Kuroda, was appointed twice by Abe.
- The BOJ made some progress toward that end — for a few years there, it looked like the target was within reach, before an oil-price collapse halted momentum.
- Even within Japan, the upswing has been inconsistent, with the second quarter narrowly averting a double-dip recession.
- Extra budgets and pork barrel are in the DNA of the LDP, which has led Japan for most of the post-World War II period.